The Central Bank has unveiled a consultation paper that outlines developmental suggestions for a more robust consumer protection code. The aim of these proposals is to modernise the consumer protection mechanism within the financial services sector, responding to the contemporary manner in which consumers access these services.
The Deputy Governor, Derville Rowland considers the Consumer Protection Code as the foundation of the consumer protection scheme in Ireland. She acknowledges the necessity to enhance these protective measures to accommodate the present and future financial system.
The prospective reforms package encapsulates strategies to simplify the usage of digital platforms. It further mandates financial services firms under regulation to distinguish between regulated and unregulated services. Moreover, it encompasses a fresh delineation of financial exploitation along with amplified monitoring to prevent scams and frauds. Emphasis is also placed on the improvement of firms’ communications protocols.
The new regulations Ms Rowland mentioned cater to the evolving financial services sectors. These include digitalisation, efficient consumer communication, mortgage lending and switching, unregulated enterprises, fraud and scams, climate risk, and support for vulnerable clients.
In the proposed scheme to assist the vulnerable, financial firms are obliged to undertake considerable actions to support such consumers. This would also include the induction of training, the establishment of reporting systems, and the incorporation of trusted points of contact.
Individuals are invited to submit their feedback regarding the consultation paper until the 7th June.
Additional features are also available for consumers in Ireland. These include access to Business Alerts, Irish Times on WhatsApp, and the Inside Business Podcast published weekly for the latest information and updates. It’s also worth noting that Irish consumers lose roughly €1bn annually due to issues with goods and services.